Regular Press Conference
REPORT ON THE ACTIVITIES OF THE REPORT ON THE ACTIVITIES OF THE
REPUBLIC TELECOMMUNICATION AGENCY
IN THE PERIOD 2005 - 2009
Prof. Dr. Jovan Radunovic
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Prof. Dr. Jovan Radunovic
Chairman of the Managing Board
IMPORTANCE OF TELECOMMUNICATIONS
– Wide range of services,
– Telecommunications globalization – ubiquities availability,
– Service convergence,
– Entertainment: television, radio, phone, Internet,
– More successful, easier and more simple business (web
economy, business, education, health...)
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TELECOMMUNICATIONS MARKET
– Quick changes and complex technology,
– Numerous direct and even more indirect participants,
– Significant capital value,
– Large income,
– Constant investment in further development required.
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TELECOMMUNICATIONS MARKET IN THE REPUBLIC OF SERBIA
Total value: approximately €10bn.
GDP share of the telecom sector: 4% - 6%.
800
1000
1200
1400
1600
1800
Revenue (EUR mn.)
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0
200
400
600
800
2005 2006 2007 2008
Revenue (EUR mn.) 927 1300 1470 1611
INVESTMENTS IN TELECOM SECTOR
2007 is a particular year as it is the first business year for the foreign
operators who have made significant investments in the development of
telecommunications in Serbia. telecommunications in Serbia.
Return on investments in telecom development equals1.4.
500
600
700
800
900
Investments (EUR mn.)
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0
100
200
300
400
500
2005 2006 2007 2008
Investments (EUR mn.) 350 190 899 362
KEY RESULTS IN TELECOM MARKET IN THE REPUBLIC OF
SERBIASERBIA
– The largest privatization –Моbi63 by Norwegian operator
Telenor, worth €1.602bn,
– The largest greenfield investment – Austrian operator
Mobilkom Austria (VIP Mobile), worth €570mn,
– The number of people working in the telecom sector –
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– The number of people working in the telecom sector –
60,000.
TELECOM MARKET REGULATION
Telecommunications Law defines the participants of the process of
telecom market regulation:telecom market regulation:
– The National Parliament of the Republic of Serbia – adopts
relevant legislation,
– The Government of the Republic of Serbia – defines the Policy and
Strategy for the development of telecommunications, adopts the
Action Plan and monitors the implementation of the
Telecommunications Law,
– The Republic Telecommunication Agency – regulator responsible
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– The Republic Telecommunication Agency – regulator responsible
for telecoms development, to the end of the protection of state
interest, promotion of competition and end user protection.
TELECOM MARKET REGULATION
1. Issuance of:
- licences,- licences,
- authorizations,
- radio station licences,
- technical permits – certificates,
- import approvals,
2. Responsible for SMP operators regulation,
3. Responsible for interconnection, universal service and leased
lines,
4. Proposes the numbering plan and manages the plan,
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4. Proposes the numbering plan and manages the plan,
5. Radio frequency spectrum management,
6. Monitoring.
MARKET CONTROL
Types of telecom services in Serbia:Types of telecom services in Serbia:
– Free competition market – market-determined prices, cost
management by the operator’s management to the end of proper
business optimization,
– Limited competition market, or market with an SMP operator –
service prices controlled by the regulatory authority.
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Mobile telephony – tree licences
– example of free market -
– Full competition,
– Investment promotion,
– Growth in penetration,
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– Growth in penetration,
– New services,
– New tariff packages,
– Lower prices.
LIMITED COMPETITION MARKET
SMP operators:SMP operators:
– Telekom Srbija – fixed telephony, телефонија,
– Serbia Broadband (SBB) – radio and Tv program cable distribution.
SMP operators may modify the prices of services only if granted
approval by RATEL.
Pricing in the limited competition market:
– Cost-based (applied with SBB),
– Benchmarking – comparison with the neighbouring and
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– Benchmarking – comparison with the neighbouring and
surrounding countries (applied with Telekom Srbija).
MARKET LIBERALIZATION
- introduction of new services and technologies –
1. Internet wholesale
– 3 authorizations for public telecom network,
– 4 authorizations for international interconnection,
– 21 authorizations for provision of VoIP services,
2. Fixed wireless access (FWA) in the frequency bands 411.875-
418.125/421.875-428.125 MHz (CDMA) for the territory of the
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418.125/421.875-428.125 MHz (CDMA) for the territory of the
Republic of Serbia - public bidding procedure underway – 8
potential bidders for 2 licences.
BROADCASTING
– Cooperation with the Republic Broadcasting Agency,– Cooperation with the Republic Broadcasting Agency,
– National, regional and local radio and TV broadcasting
licences issued,
– Order brought to the broadcasting sector,
– Constant monitoring and prevention of illegal
broadcasting.
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BROADCASTING DIGITALIZATION
Institutions involved:
– Ministry of Culture,
– Ministry of telecommunications and information society, – Ministry of telecommunications and information society,
– Republic Broadcasting Agency (RBA),
– Republic Telecommunication Agency.
Tasks:
– draw up the Strategy for broadcasting digitalization,
– prepare bylaws for the launch of Digital television (DTV) and
regulations for IPTV and DHT technology application.
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regulations for IPTV and DHT technology application.
In the RRC-06 conference in Geneva, RATEL has provided new frequency
plan for digital broadcasting:
– between 32 and 48 different TV programs,
– between 12 and 16 radio programs.
Number of subscribers Penetration(%)
COMPARATIVE TABLE OF THE NUMBER OF USERS
Number of subscribers Penetration(%)
2005 2006 2007 2008 2005 2006 2007 2008
Fixed 2,527,300 2,719,000 2,855,000 3,085,000 34 36 38 41
Mobile 5,511,000 6,644,000 8,453,000 9,619,000 74 89 113 128
Internet 757,000 1,005,000 1,269,000 1,614,000 10 13 17 22
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CATV 531,000 542,000 774,000 856,000 7 7 10 11
Broadband
Access41,000 122,000 583,000 1,218,000 1 2 8 16
QUALITY OF INTERNET SERVICE
700.000
Number of Internet subscription according to access technology
100.000
200.000
300.000
400.000
500.000
600.000
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dial up ADSL cable modem wireless accessmobile
broadband3G
other (ISDN,
direct access,
Ethernet LAN
...)
2007 685.397 132.359 87.731 36.059 0 257.379 2.276
2008 397.202 267.876 138.850 47.753 25.489 738.401 1.135
0
100.000
QUALITY OF RADIO AND TV CABLE DISTRIBUTION
SERVICES
80
20
30
40
50
60
70
80
Coaxial network (%)
Hybrid network (%)
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0
10
20
2006 2007 2008
TELECOM SERVICES PRICES – LOW BASKET
2006 2007 20082006 2007 2008
Average bill
% share in the
average
salary
Average bill
% share in
the average
salary
Average bill
% share in
the average
salary
Fixed 907.32 4.18% 928.88 2.69% 725 2.20%
Mobile
(prepaid)488.63 2.25% 351.92 1.02% 364.50 1.10%
Television
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Television
(National TV
subscription)
300 1.38% 350.00 1.02% 387 1.20%
TOTAL 1,695.95 7.81% 1,630.80 4.73% 1,476.50 4.50%
TELECOM SERVICES PRICES – HIGH BASKET
2006 2007 2008
% share in the % share in % share in
Average bill
% share in the
average
salary
Average bill
% share in
the average
salary
Average bill
% share in
the average
salary
Fixed 907.32 4.18% 928.88 2.69% 725 2.2%
Mobile
(prepaid)1,452.59 6.69% 1,257.15 3.65% 1,333.12 4.1%
Television
(National TV
subscription)
300 1.38% 350.00 1.02% 387 1.2%
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subscription)
ADSL 1,567.40 7.22% 1,309.89 3.80% 1,178.00 3.6%
CATV 404.73 1.86% 306.92 0.89% 392.61 1.2%
TOTAL 4,632.04 21.33% 4,152.84 12.05% 4,015.73 12.3%
Provision of QoS and user
protection
Quality control equipment
Spectrum monitoring vehicle
RATEL’s future virtual counter
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RATEL’S FINANCIAL OVERVIEW
2006 2007 2008
RATEL’s total revenues 405,000,000 722,700,000 1,237,000,000
Трошкови 275,000,000 490,100,000 556,000,000
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Уплаћено у буџет РС и АПВ 130,000,000 232,600,000 681,000,000
RATEL’s FUTURE TASKS
Serious challenge for further development of telecoms sector in
Serbia in the next 2-3 yearsSerbia in the next 2-3 years
– Maintain the achieved trend of telecom development in the
conditions of global economic crisis,
– Efficient usage of the existing telecoms infrastructure and continued
investments in the development and modernization,
– Create conditions for a faster development of broadband access and
Internet usage,
– Efficient usage of frequency spectrum and digital switch-over,
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– Efficient usage of frequency spectrum and digital switch-over,
– Liberalization and privatization in telecoms sector.
Thank you for your attention
Visnjiceva 811 000 BelgradeRepublic of Serbia
Phone: +381 11 3242 673Fax: +381 11 3232 537
Contact:Aleksandra StefanovicPhone: +381 11 2026 808
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